UK Community Care Framework

The gateway to community care services is a care assessment and access to this for claimants is vital. The government has introduced a single assessment procedure (SAP) for older people which combines the assessment for local authority social services with health needs guidance.

When the care assessment has been completed, the local authority will decide whether or not it should provide or arrange community care services under eligibility criteria set by each local authority. Local authorities are obliged to involve other departments in the assessment process such as welfare benefits, health, housing, transport, etc.

The assessment process will normally consist of three stages:
Assessment of need and circumstances.
Identifying needs to be dealt with by the local authority under its eligibility criteria.
Financial assessment, if appropriate.

Following a financial assessment in England, people with assets in excess of £23,000 are generally advised to make their own arrangements. The only exception is for residents who lack mental capacity and have no legal representatives.
Individuals entering residential long term care who own total assets under £23,000 in England and Northern Ireland, £22,000 in Wales and £22,500 in Scotland may be eligible for local authority funding. Eligibility is normally assessed by the individual’s inability to manage at least two activities of daily living such as mobility, washing, dressing, eating, toileting and transferring, say, from a chair into a bed.

Persons with assets (including property) of more than £23,000 in the UK will be obliged to fund their own care. They will need to pay the difference between their monthly income, such as pensions together with higher rate attendance allowance, and the money going out to the care home. The ’shortfall’ is often in the region of £ 1,000 – £2,000 plus every month. Unfortunately, the problem does not stop when the money runs down to £23,000, although the local authority is obliged to take over funding at this stage. However, there is a weekly ‘tariff’ of £1 for every £250 of savings between the lower limit of £14,000 and £23,000. This can amount to £36 each week and gradually tapers down to the prevailing lower limit (currently £14,000) at which stage no further contributions are required.

When a person enters long term care, income from their investments, private pensions, state pensions and benefits will be taken into account towards the costs of paying for care. However, a weekly allowance of £21.90 is granted for personal expenditure such as birthdays, seasonal gifts, toiletries, hair dressing and clothes. Needless to say, this amount is insufficient, so many residents will eventually use up the lower £14,000 limit allowed to them. Each local authority sets down the regular amount they will pay for care depending on the type of care required.

The amount they pay may not necessarily cover the full fees at a chosen care home. This may result in family or another third party having to pay ‘top-ups’ in order to make up the difference. This is because the person in care is not allowed to make any personal top ups to stay in a more expensive care home if they qualify for local authority funding.

Shaun Dalton is the Marketing Manager for UK Chartered Financial Planners, equityCare. He has over 38 years experience in financial services and holds the madatory qualification to provide care fees advice in addition to the CII diploma in financial planning.

equityCare is a company advising on equity release, long term care and investment. We also offer easy access to legal advice and support in related areas through equityCare Legal Services. We at equityCare understand about long term care and will inform you of all the options for funding care whether it is in your own home or in a residential or nursing home. We will work with you to obtain the type of care that is affordable and right for you.

Whether the solution is achieved by using equity release, an immediate care plan, investment or a combination of two or more of these products, your circumstances and wishes will dictate the outcome.
http://www.equitycare.co.uk